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Maximizing Clean Energy Tax Credit Benefits in New York

New York State-based businesses of all types and sizes can take advantage of various tax credits and incentives for incorporating clean energy into their operations. Learn more about how your business can save money while promoting sustainability.

Cutting Business Energy Costs for a Greener Future

Though much of the Inflation Reduction Act (IRA) focuses on consumer savings, the legislation also lowers the cost for businesses to invest in clean energy and energy efficiency.

The IRA helps small businesses, multifamily housing developers, and commercial entities get the latest clean energy technologies and equipment that will save energy for years to come. The financial benefits of the IRA can be enhanced with New York State incentives and programs, helping New York businesses use less energy, save more money, and contribute to a cleaner, healthier planet.

New York State Energy Research and Development Authority (NYSERDA)

Are you planning to expand your workspace, construct a new building, or retrofit your current office? Energy-efficient commercial buildings are eligible for tax credits of up to $5 per square foot. JTS Associates can work with you to ensure all your paperwork is accurate and adequately submitted so you receive the maximum tax credit.

Electric Vehicles (EVs)

Does your business have a fleet of vehicles or employees who drive business-owned vehicles? The federal government covers 15% of the cost of new plug-in hybrid EVs and 30% of battery-electric or fuel cell EVs. Additionally, New York State offers a rebate of up to $2,000 for eligible vehicles.

Solar Energy

  • 30% tax credit (6% base rate with an additional 24% for meeting labor standards)
  • 10% tax credit for domestic content bonus
  • 10% tax credit for energy community bonus
  • 10% tax credit for low-income community bonus (<5 MW projects)
  • 20% tax credit bonus for low-income residential building project / low-income economic benefit project

Inflation Reduction Act: Businesses – NYSERDA

New York State offers additional tax credits and incentives on top of this.

Investment Tax Credits and Production Tax Credits

The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.

The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.

Which is right for me, the ITC or the PTC?

The ITC is an upfront tax credit that does not vary by system performance, while the PTC can provide a more attractive cash flow, as the tax credits are earned over time. Whether to choose the ITC or the PTC depends largely on the cost of the project, the amount of sunlight available, and whether it is eligible for any bonus tax credits.

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